Migrant worker finds better life at home

Zhang Yunluo, a young farmer in China's eastern Shandong Province, started his heater production plant after returning home in December last year from Tianjin.

The foreign-funded firm at which he worked had been hit by slumping orders due to the economic downturn -- and Zhang, 27, paid with his job.

"It's good to stay close to my parents in the village. The first batch of energy-efficient heaters has just rolled off the production line. I believe they have a market, as farmers are more price aware of their power bills because energy price rises," Zhang says.

"I hope to sell 7,000 sets of heaters worth more than 1 million yuan next year," Zhang adds.

A year earlier, such hope would have been incomprehensible.

He was one of millions of migrant workers returning home at the end of last year as factories closed or slashed production.

China had about 225 million migrant workers by the end of 2008.

"I decided it might be a good timing to start my own business. I have worked at foreign-funded firms in Beijing, Suzhou and Tianjin as a salesman and technician. My city experience helped in a business plan."

TIMELY HELP

About 100,000 yuan ($14,640) of his hard-earned wages and relatives' money went to the 400-square-meter workshops and machinery.

"Village heads gave me a preferential policy for using the land to build workshops. I only pay 2,000 yuan a year, as my factory is the first company set up in this village of 1,500 residents," Zhang says.

A deputy town head would introduce him to property developers of neighboring towns. They are Zhang's ideal potential clients.

The city government halved Zhang's annual business tax rate to 1.5 percent, in line with measures taken by local governments nationwide to support returning migrants' business dreams.

"Working capital shortage was my biggest problem. The low land rentals, promotion opportunities and lower tax rates were a timely boost to my small factory," Zhang says.

BETTER LIVES

After seven years away from home, he now employs seven villagers.

"Two technicians can get a monthly salary of 1,500 yuan, while the other five support staff can earn more than 400 yuan a month," Zhang says.

In big cities like Beijing, 400 yuan can only buy a family a big meal, but in Chinese rural areas, 400 yuan a month is substantial money.
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